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This was the first time that the regulated gambling industry in the state of Pennsylvania crossed the $7 billion mark within a single fiscal year. The above number was stated by the Pennsylvania Gaming Control Board, which regulates local gambling business for the period of one year ending June 30, 2026.
How Big Is Pennsylvania’s Gambling Market?
Total gross revenues from all regulated activities amounted to $7,005,987,435 in fiscal year 2025/26, compared to $6,394,641,819 in the previous fiscal year. This constitutes an increase of approximately 9.6% in one year.
The same market in FY 2016/17, before the legalization of online casino gaming and sports betting, generated $3.2 billion. Revenue has more than doubled. Slotozilla experts note that operators featuring a reward with zero upfront payment also contribute to the overall growth. Such incentives distinguish their casinos’ expansion strategies in competitions for first-time online accounts.
Where Does Pennsylvania’s $7 Billion Gambling Revenue Come From?
Six regulated categories make up the total. Two of them account for more than three-quarters of everything, and the gap between the largest and smallest is enormous:
| Category | FY 2025/26 revenue | Change | Share of total |
|---|---|---|---|
| iGaming | $2,933,453,989 | +18.42% | 41.9% |
| Land-based slot machines | $2,440,995,939 | +0.02% | 34.8% |
| Land-based table games | $908,941,135 | -2.15% | 13.0% |
| Sports wagering | $662,947,631 | +35.95% | 9.5% |
| VGTs | $41,622,548 | +0.55% | 0.6% |
| Fantasy contests | $18,026,193 | -5.79% | 0.3% |
Together, iGaming and retail slots generate 76.7% of the pie. Growth goes in the same direction: digital categories grew significantly, while the retail segment was either flat or declining. The numbers are gross gaming revenue by licensed operators, thus excluding the state lottery, unlicensed skill games, and foreign websites like Vulkan Vegas or similar casinos. Those take bets without a PGCB license and consequently pay no taxes to Pennsylvania.
iGaming
Online casino gaming is now the single largest source of gambling revenue in Pennsylvania, at $2,933,453,989 for the fiscal year. That is an 18.42% increase on the $2,477,083,825 recorded in FY 2024/25.
The category covers online slots, digital table games and internet poker offered by licensed operators within the state, each of which must partner with a land-based casino to hold a licence. Growth is heavily concentrated: Hollywood Casino at Penn National Race Course alone accounted for $1.13 billion, with Valley Forge Casino Resort adding $811.8 million. Not every operator gained. Live! Casino Philadelphia saw iGaming revenue fall 52.8%, and Mount Airy dropped 47.5%.
Casino Slot Machines
Physical slot machines across Pennsylvania’s 18 land-based casinos produced $2,440,995,939, essentially flat against the previous year at 0.02% growth. This remains the second-largest category and the backbone of the retail casino business. Parx Casino led the category, followed by Wind Creek Bethlehem and Rivers Casino Pittsburgh.
Table Games
Blackjack, roulette, craps, poker and similar games generated $908,941,135, a decline of 2.15% from $928,915,940. This is the only major retail category moving backwards. Wind Creek Bethlehem posted the largest table games total at $239.9 million despite a 3.27% decrease. Rivers Casino Philadelphia fell 10.39%, and Mohegan Pennsylvania dropped 13.28%.
Sports Wagering
Sports betting revenue reached $662,947,631, up 35.95% from $487,639,844. It was a record year, and the growth rate was the highest of any category. However, Pennsylvania’s handle actually decreased over the same period, from $8,721,795,533 to $8,448,101,928. The effective hold rate rose from about 5.6% to roughly 7.8%. In other words, players bet less and lost more.
VGTs and Fantasy Sports
The two smallest categories together contribute less than 1% of the market. Video gaming terminals at qualified truck stops produced $41,622,548, a 0.55% increase. Fantasy contests generated $18,026,193, down 5.79%. DraftKings accounted for $12.5 million of that total, with FanDuel at $3.1 million. The decline likely reflects players moving from fantasy formats into regulated sports betting.
How Much Does Pennsylvania Collect in Gambling Taxes?
Gross gaming revenue represents the money that is retained by the operators. The tax and fee revenue is that which goes into the state. According to Slotozilla expert Tim Cline, both amounts are important for the market assessment. Pennsylvania took in a record-breaking amount of $3,098,193,583 in the financial year 2025/26. This is made up of $110 million from licence operation fees for slot machines, while the rest comes from the taxation of the games.
| Category | Gross revenue | Tax revenue | Effective rate |
|---|---|---|---|
| iGaming | $2,933,453,989 | $1,337,414,660 | 45.6% |
| Land-based slot machines | $2,440,995,939 | $1,233,866,398 | 50.5% |
| Land-based table games | $908,941,135 | $153,908,255 | 16.9% |
| Sports wagering | $662,947,631 | $238,661,147 | 36.0% |
| VGTs | $41,622,548 | $21,643,725 | 52.0% |
| Fantasy contests | $18,026,193 | $2,699,399 | 15.0% |
The tax rates account for why the government collects close to 44 cents of every dollar earned from gross gambling revenues. Slots and VGTs generate revenues that are taxed higher than 50% while table games are taxed lower than 17%.
All these proceeds go to reducing school property taxes for homeowners’ primary residence, economic development and safety projects, horse racing activities, municipal grants, and the General Fund.
What Is Driving Pennsylvania’s Gambling Market Growth?
Three trends account for almost the entire increase, and all three point the same way. Digital play carried the market while physical floors stood still:
iGaming added $456 million year over year. The segment grew 18.42% to $2.93 billion, more than VGTs and fantasy contests produced in total.
Sports wagering contributed $175 million on falling handle. Bettors staked less, from $8.72 billion down to $8.45 billion, yet operators kept 35.95% more.
Retail casino play was static. Slots rose 0.02%, and tables fell 2.15%.
Pennsylvania now sits behind only Nevada among states clearing $7 billion in a fiscal year, but the entire Pennsylvania now sits behind only Nevada increase came from digital channels. Casino floors are holding steady while the money moves to phones, which reshapes both the tax base and the regulatory questions ahead.